Tenet Healthcare Corporation (NYSE: THC) announced it has entered into a definitive agreement with Orlando Health for the sale of Tenet’s 70% majority ownership interest in Brookwood Baptist Health in Birmingham for approximately $910 million in cash (after-tax proceeds of approximately $790 million).
The transaction will include five hospitals – Brookwood Baptist Medical Center, Princeton Baptist Medical Center, Walker Baptist Medical Center, Shelby Baptist Medical Center, Citizens Baptist Medical Center – as well as affiliated physician practices and other related operations. Brookwood Baptist Health will remain a joint venture with Baptist Health System.
“We are grateful for the partnership with Baptist Health System, which has enabled us to collectively enhance the high-quality, compassionate care that Brookwood Baptist Health offers,” said Saum Sutaria, M.D., Chairman and CEO, Tenet Healthcare. “Orlando Health is an esteemed, high-performing healthcare organization with an over century-long commitment to improving the health and wellness of the communities they serve. Integration of these hospitals into their network will advance healthcare for the greater Birmingham communities.”
Key implications for medical device manufacturers could include:
- Transition in Management: Orlando Health, a private, nonprofit healthcare system, will manage day-to-day operations. Understanding their procurement processes and establishing relationships with their management team will be crucial (chiefhealthcareexecutive).
- Potential Changes in Purchasing Practices: With the shift in ownership, there might be changes in purchasing practices and contracts for medical devices and supplies. It's important to stay informed about any new policies Orlando Health might implement.
- Continued Partnerships: Tenet’s subsidiary, Conifer Health Solutions, will maintain a 10-year contract to provide revenue cycle management services, which could influence billing and administrative processes related to device procurement (chiefhealthcareexecutive).
- Regulatory Approvals: The deal is expected to close in the fall of 2024, pending regulatory approvals. Staying updated on the progress of these approvals will be important for strategic planning (bhamnow).
- Market Dynamics: This sale follows a trend of significant healthcare transactions in the Birmingham area, indicating a dynamic and evolving healthcare market. Being proactive in understanding these market shifts can provide competitive advantages (chiefhealthcareexecutive).
By staying informed about these changes, account executives can better navigate the evolving landscape and adapt their strategies to meet the needs of the new management at Orlando Health.
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